LAND SETTLEMENT FINANCE ACT.

Dominion, Volume 5, Issue 1536, 4 September 1912, Page 3

LAND SETTLEMENT FINANCE ACT.

* AFFAIRS OF ASSOCIATIONS, The following comments upon the operations of the Land Settlement Associations formed under the Lanil Settlement Finance Act are embodied by the Public Trustee in his annual report: — '.'Twenty-four of these associations have been formed. Tho Act makes the Public X'rnstee the statutory agent of each association, and requires him to raise the purchase money of the land by the issuo of debentures which iare guaranteed by the State. The result is that the State incurs a. very heavy liability, and it is therefore of importance that the expense of launching tho associations should bo reduced to the lowest possible terms. The office is doing all it can in this direction. "Tho Act exempts from stamp duty the. transfer from the vendor to the association. I surest that transfers from the association to tho members should be similarly exempted; also that the mortgages from members to the association should bo exempt from mortgage tax. These concessions would strengthen 'he finance, which is weak at best. In some , cases the memers are already in arrear with their payments. "The Act provides that tho debentures arc to have a currency of twenty years, but are redeemable on six months notice at.any time after five years from date of issue, i The effect of this is that the debentures >'are not ,a permanent security for investors. It would be better it the provision fer rate'ription were omitted, and power given' to the association to apply its funds ii\ redee-ning its debentures at nny time by purchase in tho ordinary way.

"'Several cases have occurred where a member has leased his allotment with a purchasing clause, tho purchase price showing a large profit. It is a question whether this is not against the principle of the Act." . .